Related Articles
Prestwick Airport has posted a fifth consecutive year of operating profit as ministers remain open to offers.
New partnerships are expected to drive expansion in the cargo sector. One of the key developments is its collaboration with Royal Mail, announced after the results period in June.
It will shortly announce another partnership with a US airport which aims to establish a new transatlantic cargo corridor, initially focusing on aerospace shipments such as engines, engine parts, and specialised tooling. The collaboration will promote direct cargo flights between the two airports.
This agreement also opens the door to exploring the use of Prestwick as a strategic pitstop on already established cargo routes between the US airport and Europe.
The airport posted a £3.2m operating profit for the year to the end of March from from £2.1m in the previous 12 months. Pre-tax profit came in at £1.5m, from £800,000 last time. Revenue fell to £54.1m from £58.1m.
A long-term relationship with Ryanair, its only passenger service, has been strengthened with a five-year agreement, resulting in a new winter route this year and an increase in the frequency of flights next summer. There were 523,000 passengers across the year, compared to 459,000 in the previous 12 months.
The Airport is a base for Ryanair with an aircraft maintenance, repair and overhaul facility on site employing more than 600.
The outstanding government loans is £43.4m and together with accrued interest of £12.1m the balance included within net liabilities is £55.5m.
The airport has not drawdown funds for over five years and does not expect to require any additional loan support in the next 12 months. The group has £16.6m (2023: £19.6m) of cash reserves as at the balance sheet date to support future investment in assets that support its growth strategy.
Earlier this year Forsyth Black resigned as Prestwick’s chairman to work on a potential bid with Onex Corporation, a Canadian investment firm.
There was no update on this or any other interest from potential buyers beyond a statement with the accounts which said: “The Scottish Government and Scottish Ministers continue to strongly support the board and consider the airport a strategic asset.
“Based on this the board is confident that the Scottish Government will continue to defer repayment of the outstanding loans and accrued interest thereon for the foreseeable future (at least 18 months from the date of approval of these financial statements) and until a suitable financial restructure can be agreed by both parties, or alternatively on a future sale of the business.”
Ian Forgie, chief executive of Prestwick Airport, said: “We are incredibly proud to celebrate our fifth consecutive year of profitability, a milestone that underlines the success of our strategic vision.
“Our diverse business streams are proving to be robust and adaptable, allowing us to capitalise on growth opportunities even in a challenging market environment.
“The new partnerships with Royal Mail and the US airport highlight our commitment to expanding our cargo operations and establishing Prestwick as a leading hub for e-commerce and aerospace logistics.
“We look forward to building on these partnerships and driving continued growth for the benefit of Ayrshire and the wider UK economy.”
Chairman Willie Mackie, said: “Market conditions remained challenging, however we have seen further tangible evidence that our strategic focus across the business is delivering positive trading results.
“The directors and the executive team remain fully committed to maximising the potential of the Airport and to delivering the maximum return to our shareholder.”
